A commercial lease serves as the agreement between a landlord and a tenant who is renting the landlord's property for a business purpose. If you are a commercial tenant, you should understand your state's real estate laws and know your rights if either party decides to break the lease early. As a business owner, you might need to terminate your lease because you've decided to move to another location or end operations altogether. If necessary, you may be able to reduce your financial liabilities.

1. Read the terms of your commercial lease so that you understand each party's obligations in the event of an early termination. Identify all terms relevant to breaking the lease early; these terms might include a financial penalty, discuss the security deposit, and explain whether the tenant has a right to sublet the property.

2. Contact your landlord, and request to sublease the property to another business for the remainder of your lease, especially if your lease specifically allows subletting. Ask the landlord to approve a sublease if your lease does not permit subletters specifically. If you can negotiate permission to sublease, you may significantly reduce your financial liability if another tenant has an obligation to pay the rent.

3. Negotiate with the landlord to see if you can agree on any written and signed modifications to the lease that may be more favorable to you. For example, you might ask the landlord to shorten the duration of the lease or forgive an early-termination penalty specified by the lease, especially if you can sublease the property. Mention any unfavorable conditions or breaches of contract by your landlord, if any, that may provide you with a legal basis for an early termination under your state's commercial real estate laws.

4. Provide written notice to your landlord that states your intention to break your lease at an earlier date than expected. The landlord may charge a penalty if permitted by the lease or you might continue to be liable for rent payments unless you and the landlord reach an agreement; in these situations, you might need to take legal action or speak with a lawyer.

5. Clean and vacate the premises before you attempt to return the premises to the landlord. Identify the terms in your lease regarding the return of your security deposit, and try to meet each requirement in order to receive back as much of the security deposit as possible.

Things Needed

Copy of your commercial lease agreement

Tips

Research the real estate laws followed by the state where the commercial property is located. Your state's bar association or a local business association may offer free state-specific information or resources.

Consult with a real estate lawyer if you have any questions regarding your potential liabilities as a commercial landlord or commercial tenant.

Warnings

Make note of all key dates specified by your commercial lease agreement, and especially note any provisions about the notice period required to break the lease.

If you are the commercial tenant, you may need to continue paying rent until you and the landlord have reached a written modification of the lease to permit an early termination or any other change in your agreement.